Provincial cooperation on the rise in hopes of achieving a single market
to enhance competitiveness
TORONTO, April 5 /CNW/ - Canada maintains ninth position out of 29
countries measured for their renewable energy infrastructure investment
attractiveness in Ernst & Young's latest Renewable energy country attractiveness indices.
"Although new investment in clean energy reached unprecedented levels in
2010, climbing 30% to US$243 billion, our indices tell us that some
countries and technologies are still finding economic conditions deeply
challenging, leaving the global market in an overall state of flux,"
said Stephen Lewis, leader of Ernst & Young's Renewable Energy Advisory
practice in Canada.
Our indices confirm that China has remained the most attractive market
for renewable energy infrastructure; however, some concerns exist over
whether its rapid growth rate can be sustained. These challenges are
likely to increase competition for Canadian businesses as, notably in
the wind sector, the current supply chain is mainly domestically
focused. A slowdown in this market could force some suppliers to seek
international alternatives to maintain growth.
The United States approved a one-year extension of the US Treasury grant
scheme, providing respite to the US renewable energy market and
increasing near-term stability across North American renewable energy
markets, allowing Canadian businesses greater certainty over near-term
The top 10 all renewables index as of February 2010 includes the
Here in Canada, a CDN$6.2 billion deal between Nova Scotia, New
Brunswick, and Newfoundland and Labrador to develop transmission assets
from the 824-megawatt Muskrat Falls hydroelectric power facility
showcases how unity between provinces is developing, with hopes that
increased market co-operation or even a single market could develop.
In Ontario, the renewable energy market continues to grow, with new
contract offers from the Ontario Power Authority and a number of
projects passing the notice-to-proceed stage.
Canada's wind power sector continues to attract finance, with the Glen
Dhu wind farm in Nova Scotia and the Mont Louis wind farm in Quebec
reaching financial close in 2010.
The merger between Magma Energy Corp. and Plutonic Power Corporation to
create Alterra Power Corp. creates a geothermal and onshore wind
development company, reducing market risk for each individual business
unit while allowing leverage of synergistic project development skills.
Ernst & Young's country attractiveness indices provide scores for
national renewable energy markets, renewable energy infrastructures and
their suitability for individual technologies. The indices provide
scores out of 100 and are updated on a regular basis.
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